Regulation - LGIC
Proposed Amendments to Ontario Regulation 316/08: Designation - Flowers Canada (Ontario) Inc. under the Farm Products Marketing Act.
Regulation Number(s):
O. Reg. 316/08
Instrument Type:
Regulation - LGIC
Bill or Act:
Farm Products Marketing Act
Summary of Decision:
Following a request from Flowers Canada (Ontario) Inc. (FCO), an amendment to Ontario Regulation 316/08: Designation - Flowers Canada (Ontario) Inc. under the Farm Products Marketing Act was made by the Lieutenant Governor in Council.
The annual producer fee payable to FCO by greenhouse floriculture producers will increase:
• As of July 1, 2023, the fee will be 3.5 cents per square foot of production. Producers will be obligated to pay no more than $29,750.
• As of July 1, 2024 and subsequent years, the fee will be 4 cents per square foot of production. Producers with be obligated to pay no more than $34,000.
Producers have largely expressed their support for the fee increase.
The Regulation was filed with the Registrar of Regulations and comes into effect July1, 2023.
The annual producer fee payable to FCO by greenhouse floriculture producers will increase:
• As of July 1, 2023, the fee will be 3.5 cents per square foot of production. Producers will be obligated to pay no more than $29,750.
• As of July 1, 2024 and subsequent years, the fee will be 4 cents per square foot of production. Producers with be obligated to pay no more than $34,000.
Producers have largely expressed their support for the fee increase.
The Regulation was filed with the Registrar of Regulations and comes into effect July1, 2023.
Analysis of Regulatory Impact:
The amendments to O. Reg. 316/08: Designation - Flowers Canada (Ontario) provide the association with revenue to support the activities desired by the members to enhance the profitability and competitiveness of the sector.
Based on FCO's reported production area of 30 million square feet, the total fee increase of 1.5 cents per square foot over two years will result in direct compliance costs of approximately an annual net present value of $341,661 over 10 years. The direct compliance costs for producers are considered reasonable as revenues from the fee are not projected to exceed costs for services provided by FCO. FCO has been in discussions with its producers since 2021 on the need to raise licence fees to support core functions. Producers value the work of the FCO and support the amendment.
There are no new administrative compliance costs to the association, the producers or government. There are no direct compliance cost-savings from these regulatory amendments.
Based on FCO's reported production area of 30 million square feet, the total fee increase of 1.5 cents per square foot over two years will result in direct compliance costs of approximately an annual net present value of $341,661 over 10 years. The direct compliance costs for producers are considered reasonable as revenues from the fee are not projected to exceed costs for services provided by FCO. FCO has been in discussions with its producers since 2021 on the need to raise licence fees to support core functions. Producers value the work of the FCO and support the amendment.
There are no new administrative compliance costs to the association, the producers or government. There are no direct compliance cost-savings from these regulatory amendments.
Further Information:
O. Reg. 316/08
Proposal Number:
23-OMAFRA007
Posting Date:
March 30, 2023
Summary of Proposal:
Following a request from Flowers Canada (Ontario) Inc. (FCO), the Ministry of Agriculture, Food and Rural Affairs is proposing amendments to Regulation 316/08: Designation - Flowers Canada (Ontario) Inc. that would increase the licence fees payable by greenhouse floriculture producers.
The fee increase would be rolled out over two years:
• Year One, increase the producer fee from the current 2.5 cents to 3.5 cents per square foot. Producers with operations greater than 850,000 square feet would be obligated to pay no more than $29,750.
• Year Two and subsequent years, increase the producer fee from 3.5 cents to 4 cents per square foot. Producers with operations greater than 850,000 square feet would be obligated to pay no more than $34,000.
If made, the proposed amendments are anticipated to come into effect on July 1, 2023. The fees would provide FCO with revenues from licence fees of approximately $1,000,000 annually by the second year to support the activities desired by the members to enhance the profitability and competitiveness of the sector.
Ontario greenhouse floriculture producers of less than 20,000 square feet would continue to be exempt from mandatory participation and payment of licence fees.
The direct compliance costs for producers are considered reasonable as revenues from the fee are not projected to exceed costs for services provided by FCO. FCO has been in discussions with its producers since 2021 on the need to raise licence fees to support core functions. Members value the work of the FCO and support the amendment.
There are no new administrative compliance costs to the association, the producers or government. There are no direct compliance cost-savings from these regulatory amendments.
The fee increase would be rolled out over two years:
• Year One, increase the producer fee from the current 2.5 cents to 3.5 cents per square foot. Producers with operations greater than 850,000 square feet would be obligated to pay no more than $29,750.
• Year Two and subsequent years, increase the producer fee from 3.5 cents to 4 cents per square foot. Producers with operations greater than 850,000 square feet would be obligated to pay no more than $34,000.
If made, the proposed amendments are anticipated to come into effect on July 1, 2023. The fees would provide FCO with revenues from licence fees of approximately $1,000,000 annually by the second year to support the activities desired by the members to enhance the profitability and competitiveness of the sector.
Ontario greenhouse floriculture producers of less than 20,000 square feet would continue to be exempt from mandatory participation and payment of licence fees.
The direct compliance costs for producers are considered reasonable as revenues from the fee are not projected to exceed costs for services provided by FCO. FCO has been in discussions with its producers since 2021 on the need to raise licence fees to support core functions. Members value the work of the FCO and support the amendment.
There are no new administrative compliance costs to the association, the producers or government. There are no direct compliance cost-savings from these regulatory amendments.
Contact Address:
Branch: Ontario Farm Products Marketing Commission Secretariat
Address: Ontario government Bldg. 5th flr; 1 Stone Road West; Guelph ON N1G 4Y2
Address: Ontario government Bldg. 5th flr; 1 Stone Road West; Guelph ON N1G 4Y2
Effective Date:
July 1, 2023
Decision:
Approved